Press Release - January 23, 2004

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

Update on Kimberlite Exploration in James Bay Lowlands

Ground Magnetic Surveys Confirm Pipe-Like Anomalies

Ottawa (January 23, 2004) - In response to significant geochemical and geophysical results, Northern Shield Resources Inc (“Northern” NRN: TSX-V) is pleased to provide an update to its exploration program underway on its Bradley Property in northern Ontario.

The start of the ground geophysical surveys had been delayed due to unseasonable warm weather before and after Christmas. This prevented the crews from reaching the targets by ground due to the numerous open lakes and creeks. The ground magnetic surveys, that were designed to test the high priority targets announced in press releases dated November 18th and December 4th, are now underway and the results from two of these surveys have been reviewed by management. One of these targets (BT-111) shows a circular, high frequency, magnetic anomaly approximately 350 meters in diameter (see Northern Shield’s website). The target is clearly distinguishable from the low amplitude magnetic signature of the Archean rocks whose magnetic response is being subdued by the Paleozoic cover. The target is located 2 km up-ice from samples containing kimberlite indicator minerals including a kelyphite mantled pyrope grain. As kelyphite is considered very fragile, its presence on the pyrope grain suggests close proximity to source.

“We are very pleased by the results of the magnetic surveys,” says Mr Bliss, President and CEO of Northern Shield, “these are by far the best magnetic anomalies we have seen, its not easy looking for kimberlites in this part of Ontario based on the complex glacial history,” continued Mr Bliss “but we believe we may have cornered the source for the kimberlite indicator minerals in the area. We have fragile textures on pyrope grains down-ice from these targets whereas samples up-ice from these targets are mostly void of kimberlite indicators.”

The surveys are being conducted by Vision Exploration of Timmins and are being overseen by Mr. Ian Bliss. The Bradley Property is located north of Kapuskasing, Ontario and is accessed via a network of all-weather and, winter roads.

Northern Shield is a publicly traded Canadian mineral exploration company (NRN:TSX-V) that believes that the key to exploration success and the creation of investor value is found in a combination of ingenuity, technical expertise and efficiency. All of the Company’s current properties are in northern Ontario.

If you would like more information about Northern Shield Resources Inc. and its properties, please visit our website at www.northern-shield.com or contact:

Ian Bliss
President
Northern Shield Resources
Suite 1600 – 150 Metcalfe Street
Ottawa, Ontario K2P 1P1
Tel: (613) 232-0459
Fax: (613) 232-0760
e-mail: ibliss@northern-shield.com

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CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Northern Shield, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Shield’s expectations are exploration risks detailed herein and from time to time in the filings made by Northern Shield with securities regulations.

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